The price of Bitcoin has remained stable above the $ 17,500 support against the US dollar. BTC is showing bullish signs and a close above $ 18,200 could trigger another wave.
- Bitcoin formed a support base near the $ 17,380 level and climbed higher.
- The price is now well above the $ 17,500 level and the 100 hour simple moving average.
- There was a break above a major downtrend line with resistance near $ 17,800 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair could gain bullish momentum if there is a close above $ 18,150 and $ 18,200.
Bitcoin price shows bullish signs
There was another drop in the price of bitcoin below the $ 17,600 and $ 17,500 levels. However, BTC has remained stable and it looks like a strong support base is forming near the $ 17,380 level.
The recent low was near $ 17,382 before the price started to move higher. It broke through the $ 17,500 and $ 17,600 levels. There was also a break above the $ 17,800 level and the price of bitcoin has stabilized well above the 100 hour simple moving average.
More importantly, there was a break above a major bearish trendline with resistance near $ 17,800 on the hourly chart of the BTC / USD pair. The pair even climbed above $ 18,000, but struggled to clear the $ 18,200 resistance.
Source: BTCUSD on TradingView.com
A high is forming near $ 18,231 and the price is currently consolidating. It corrected below the 23.6% Fib retracement level of the recent upward movement from the oscillating low of $ 17,382 to $ 18,231. Bitcoin now appears to be following a bullish flag pattern with resistance near the $ 18,030 level.
A successful breakout above the $ 18,030 level could drive the price towards the $ 18,200 resistance. To start a strong rally, price needs to move well above the resistance level of $ 18,200. In the stated case, the price could perhaps clear the resistance of $ 18,500 and move up towards $ 19,000.
Dips supported in BTC?
If bitcoin fails to gain strength, it could test the $ 17,800 support. The 50% Fib retracement level of the recent upward movement of the swing low from $ 17,382 to $ 18,231 is also near the $ 17,800 level.
The first major support is near the $ 17,500 level. Major support is now forming near the $ 17,380 level, below which there is a risk of a larger drop in the coming sessions.
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently above the 50 level.
Major Support Levels – $ 17,800, followed by $ 17,500.
Major Resistance Levels – $ 18,030, $ 18,200, and $ 18,500.